More emerging affluent consumers in
Nigeria plan to start a business to increase their wealth than in any
other market, according to a new Standard Chartered study.
The Emerging Affluent Study 2018 –
‘Climbing the Prosperity Ladder,’ – examined the views of 11,000
emerging affluent consumers – individuals who are earning enough to save
and invest – from 11 markets across Asia, Africa and the Middle East.
In Nigeria 41 per cent of emerging
affluent consumers said starting their own business was a strategy to
meet their financial goals and increase their wealth.
This compares to an average of 27 per cent.
The study revealed that the number one
financial goal for Nigeria’s emerging affluent was saving towards their
children’s education, with 14 per cent stating this. It was also the top
savings priority across the markets in the study (16%).
For more than one in 10 (11%) setting up
a business is the top savings goal; this is higher than any other
market – the average figure is just seven per cent.
“When it comes to meeting their
financial goals, more than half (54%) of the emerging affluent in
Nigeria say they invest with a target and a strategy to achieve it.
“Despite this, when describing the
financial products, they use to meet their goals the most basic savings
approaches came out on top: 59 per cet use savings accounts. By
comparison, less than one-fifth use fixed income investments (19%),
equity investments (13%) and mutual funds (12%); however, a quarter use
property investment making this the second most popular method for this
market.
“This could explain why currently more
than half (54%) of Nigeria’s emerging affluent feel far away from
achieving their top financial goal. The emerging affluent in Nigeria
recognise that a lack of financial understanding may be stopping them
from meeting their financial goals: more than a third (35%) say they
feel held back in their aspirations by their lack of financial
knowledge; and 58% believe financial education would help them reach
their financial goals faster,” the report added.
The study also revealed that more than
two-thirds (70%) of Nigeria’s emerging affluent believed effective
wealth management holds the key to greater social mobility, so
addressing the financial knowledge gap could play a crucial role in
helping them to keep moving up the ladder.
Furthermore, the report stated that
nearly two-thirds (64%) of Nigeria’s emerging affluent say their
familiarity with digital tools has been vital to their personal success.
Almost the same number (65%) said online banking makes them feel that
they have more control over their money and investments, and 55 per cent
said digital money management has helped them get closer to achieving
their financial goals.
Commenting on the survey findings, the Head, Wealth Management, Standard Chartered,
Simpa Adaba said: “It’s exciting to see
that social mobility is booming among the emerging affluent, and that
they are outstripping their parents’ success in education, careers and
home ownership. These aspiring consumers are determined to continue
moving upwards, and know that investing can help them reach their
financial goals.”
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